Map the current obligations and dates
List every relevant facility, balance date, repayment profile, maturity and known fees. Identify which obligations are intended to be replaced and which remain. Obtain current statements and check for conditions requiring specialist interpretation.
Build a timetable backwards from the actual payment or maturity date. Include preparation, lender assessment and completion dependencies, but do not promise a standard duration. An initial enquiry or indicative discussion is not a committed replacement facility.
Explain the commercial purpose of refinancing
State whether the aim is to replace a maturing loan, fund growth, change repayment timing or simplify facilities. Separate the amount needed to repay existing borrowing from additional cash sought for the business.
A hypothetical £250,000 old balance plus £10,000 assumed fees and £40,000 new working capital need totals £300,000 before other items. Evidence each amount and update the funds flow when terms change. Avoid describing the full proposed facility as growth capital if most replaces existing debt.
Reconcile trading and the cash forecast
Provide financial periods and current management information consistently. Explain material changes since the last accounts and show how the forecast starts from current cash and balance-sheet items. Keep actual performance separate from management’s future assumptions.
A lender may ask about cash conversion, customer concentration and unusual costs. Prepare supporting schedules, not just a profit forecast. The requirements will vary by lender and product, so use the actual requested information list as the controlling checklist.
Show the transition between facilities
Model when new funds arrive, when old balances are repaid and any temporary overlap in interest or fees. Identify conditions that must be met before drawdown. Do not assume proceeds are available at the start of the month merely because repayment is due later that month.
Include existing security and guarantee questions in the adviser workstream. Financial preparation can flag the need for releases, consent or legal review; it should not declare that security is transferable or a guarantee has ended without the appropriate confirmation.
Keep a fallback case visible
Assess what happens if refinancing takes longer, is smaller or does not proceed. Identify immediate operational and cash implications. Discuss material concerns early with qualified advisers and relevant counterparties rather than allowing the model to assume a successful completion automatically.
Record what management can actually control, such as spending timing, and what depends on third parties. A fallback plan is not proof that every consequence can be avoided. It helps make the uncertainty explicit while the funding discussion progresses.
Check the completion dependencies explicitly
Place the existing repayment deadline next to each condition for the new facility. Identify who must supply evidence, obtain consent or release funds. This makes a timing assumption reviewable. If the timetable depends on a third party, record that dependency and avoid reporting completion as certain merely because all internal documents are prepared.
| Area | Evidence to examine | Question to resolve |
|---|---|---|
| Old borrowing | Current payoff figure and repayment date | Who confirms the amount and any release conditions? |
| New borrowing | Approval, documents and drawdown requirements | Which conditions remain outstanding? |
| Transition | Dated funds flow and operating cash forecast | Can the business meet commitments if completion is delayed? |
Organise the pack and its update process
Use an index with document dates, versions and owners. Reconcile the proposal, forecast and funds flow whenever terms or trading change. Keep a question log so the same point is answered consistently across the process.
Consult EFC can discuss refinancing modelling and information preparation. Start with the current deadline, broad obligations and objectives. Approval, pricing and legal documentation remain subject to the lender and relevant advisers; no outcome or completion date is guaranteed.
Your preparation checklist
- List existing balances, maturities and relevant conditions.
- Separate replacement debt from additional business funding.
- Model drawdown, repayment and overlap timing.
- Keep a downside if refinancing is delayed or unavailable.
Frequently asked questions
When should refinancing preparation start?
Work backwards from actual deadlines and discuss the requirements early. There is no universal completion period for every facility.
Can a new facility repay the old one automatically?
Only if the terms, funds flow and legal completion arrangements support it. Confirm conditions and release requirements with the relevant parties.
Do we need current management accounts?
Lenders commonly request current information, but the exact requirements depend on the lender, facility and business. Follow the requested checklist.
Sources and scope
This is general preparation guidance. Worked examples are original hypothetical illustrations, not client outcomes, market multiples or individual advice. Agree the purpose, evidence and scope before commissioning professional work.
Professional background: ICAEW technical resources. These links provide context and do not imply endorsement, assurance or compliance for an individual engagement.
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